RERA helps bring down land rates in Navi Mumbai

The land rates in Navi Mumbai has fallen down by 25%-40% as compared to the last auction, because of the Real Estate ( Regulation and Development ) Act. In the auction conducted by City and Industrial Development Corporation (CIDCO), in the recent auction CIDCO pulled together Rs. 245 crore in the tender of six plots in New Panvel. this time the rates per square meter ranged from Rs.65,250 to Rs. 96,000. Whereas in the last auction the rate was retained to Rs.1.25 lakh per sq meter.

The vice president of MCHI-CREDAI (Navi Mumbai) says its Rera taking toll , “The RERA does not allow builders to sell apartments till they obtain all requisite approvals. This has kept speculators at bay and now serious builders with proper plans are entering the field.”

These days , the land prices in realty market costs 50-70% of the actual project costs. “Such decrease will only have a cascading effect and the result will be more affordable housing stock in the market”, says real estate consultant Mohan Arora . The final prices gets affected if any reduction in land prices occurs, adds Arora. Currently, the prices in New Panvel varies from Rs3,500 to Rs6,500 per square feet.

Rera demands the builder to disclose his entire construction plan as well as the time line about when he would give possession of the apartments. There are various clauses in the Act against builders and brokers, in RERA .

According to Liases Foras, exorbitantly priced land pieces are a menace to the realty sector. “Those projects have never taken off in which the builder pays exorbitant land rates,” said Pankaj Kapoor, CEO, Liases Foras.